Business at work

personal service.

Examples: baby changing facilities, no quibble money back guarantee, "one

in front" queuing policy.

Store design

Objective: to provide an environment that is easy and pleasant to shop in.

Example: store layouts, fixtures and ambience improved to ease customer

flow and make shopping more enjoyable.

Store refurbishment

Objective: to upgrade existing stores to the standard that is expected from

Tesco.

Example: existing stores improved to include recent innovations.

Communications

Objective: advertising should appeal to all social and economic groups in a

relevant and friendly way. Example: recent television ads.

C2

How the organisational structure, culture and management style of the

business affects its performance and operation and helps it to meet its

objectives?

I have analysed each of the major functions of Tesco separately. However,

it is the effective interaction of business functions that is essential to

the success of an organisation in attaining its objectives.

Marketing

Advertising.

Tesco uses advertising in the press, on the radio as well as on television

to support the company’s marketing by making the public aware of the

products and services available in its stores.

The Tesco logo.

The Tesco logo is a vital part of its image. By 1995 many versions of the

logo had evolved and company’s corporate identity was not focused. Company

therefore began to use one single Tesco logo that is the same everywhere,

on stores, letterheads, posters, lorries....

The new logo has the company name in red, the underlining in blue and the

background white. However, given the cost of this change Tesco did not

immediately change every logo for the sake of it, but gradually as old

items were replaced, repaired, repainted, reprinted or re-designed. This

means that it is taking about three years for the new logo to completely

supersede all other versions.

Chef’s Club.

The Chefs' Club is an initiative which brings the best advice on food and

drink to customers and aims to make shopping more enjoyable. Tesco is

working with some of the country's top chefs and other experts who want to

share their passion for good food and drink with customers.

Tesco Packaging Design.

Tesco has many "Own Brand" products, and in order to promote its own brand

correctly Tesco has its own Packaging Design Department. Products sell for

a variety of reasons; in the first instance, the visual appeal of a product

is important to attract customers to the product initially, as it is only

after the first purchase that the customer is attracted because of the

quality of the product and its value for money.

Tesco Product Promotion.

Product promotion is the responsibility of the Tesco public relations

team. The team is always involved at the planning stage of any new product

or service, and its brief is to generate extensive and appropriate coverage

for the new product.Tesco has three key objectives for any product

promotion; these are:

. to reinforce the Tesco brand values of quality, choice, price and

service

. to maintain the Tesco image as a market leader through its products

and services

. to manage product issues - both positive and negative.

Distribution

Purpose of the distribution department

Its purpose is to ensure that Tesco stores have the right products

delivered against agreed delivery schedules and in good condition, enabling

the stores to provide a consistently high level of customer service.

Tesco products are sent to stores from distribution centres around the

country. Tesco runs 13 centres and a further six centres are run for Tesco

by contractors. A typical centre covers 300,000 square feet and handles

some 50 million units a year. The centres work around the clock, seven days

a week, providing 2,500 deliveries daily, amounting to 19 million cases per

week. Tesco employs 6,800 people in distribution (excluding the staff at

the contractor-run centres), and has about 1,000 tractor units and 2,000

trailers in its national vehicle fleet.

How does Tesco keep each store supplied with what it needs?

The key to the distribution system’s ability to supply each store’s needs

are the advanced use of IT at all stages of the distribution system.

Information from stores about their sales and requirements is sent to Tesco

Head Office and from there to the distribution centres. The centres run a

computer system that has been specially designed to fit with Tesco working

practices and to maximise efficiency).

How does Tesco achieve maximum efficiency in its distribution centres?

Computerised information arrives via printers in the warehouse offices. The

system feeds this information directly to the staff on the warehouse floor

via radio links mounted on the fork-lift trucks. The system helps to

control the movement of stock and the activity of staff. Thus when a person

has finished a particular job, the computer decides which would be the most

efficient job to allocate next to that person, based on his or her current

position in the warehouse.

Also, in the past, Tesco’s operations have been slowed down at peak times

by the need for product identification and purchase-order matching. Now

each goods-in checker is equipped with a scan gun which can scan the outer

case code of each product and radio the information back to the Head Office

computer, which matches a delivery with its purchase order in an instant.

As well as easing bottlenecks, this system enforces accurate outer case

coding, which Tesco believes to be essential to future developments in its

distribution system.

Human Resources

People are fundamental to business and the way company recruit, develop

and reward people is the key to success. Human Resourcing in Tesco is

therefore influential, leading edge and proactive to ensure continued

success.

Human Resources at Tesco is divided into a number of central areas which

focus on the design and research of Tesco HR policies and a number of front

line HR professionals that work in partnership with company’s Line Managers

to deliver the business plan.

Promote management development

Tesco does this by providing opportunities for everyone to increase their

learning, thus enabling Tesco to thrive in a constantly changing and

competitive market place. Tesco does this by:

designing training packages which equip people with the knowledge, skills

and experience needed to reach high standards of performance, and equipping

trainers to coach others thus maintaining excellent quality standards.

enabling training to be delivered in the workplace by people who know how

to do the job themselves.

exploiting new methods of learning, and thereby providing a supply of

general business managers for the future.

developing effective working relationships with colleagues and suppliers

through listening and challenging, and designing products which inspire

them.

Research and development of effective corporate human resource policies

Tesco does this by:

being constantly aware of UK and European employment legislation, and

translating it into policy that maintains a balance between cost

effectiveness, fairness, developing relationships with people, and

company’s business aims.

researching and developing people involvement strategies; this involves

analysing staff research, which includes both large-scale corporate surveys

and specialist staff research.

providing updates on employment law.

scanning and benchmarking other organisations, in order to import best

practice and maintain a competitive stance.

ensuring specific policies, for example regarding the employment of

disabled people and equal opportunities.

achieving external recognition, to ensure that Tesco is seen as a quality

employer.

Developing selection standards and implement corporate entry programmes

Two crucial roles for the Human Resources Department are:

developing selection standards which will enable managers to select the

best people who will continually increase value for customers.

implementing corporate programmes in order to ensure that the company's

manpower requirements are met.

Tesco does this by:

designing recruitment and selection processes which will equip managers

with the skill and knowledge to select the best.

training managers to maintain selection standards, and to select using the

most reliable and leading-edge processes.

developing corporate competency frameworks which enable managers to select

the right people, who have the skills the business will need in the future.

developing corporate entry programmes to ensure that corporate manpower

needs are met in terms of skills and numbers.

developing and implementing Tesco employment branding and marketing

strategy in order to ensure that Tesco is seen as a quality employer which

attracts the highest calibre candidates.

developing a pool of Excel graduates providing a supply of managers with

broad business experience.

developing at a national level links with leading education/industry

establishments, and planning initiatives whereby managers can develop links

with education at a local level.

Reward Development

Reward Development researches and develops rewards and organisational

design strategy which enable Tesco to recruit, motivate and retain the

best. Tesco does this by:

sourcing and analysing pay and benefits data to enable Tesco to keep

remuneration and benefits packages competitive.

continually shaping innovative ways of rewarding staff, thereby enhancing

the value of the reward package and increasing staff retention and

stakeholding.

developing performance management processes and tools which will improve

performance and encourage motivation in staff

providing advice and if necessary challenging organisational design,

thereby ensuring a maximum return on corporate reward spend and creating

organisational structures which will deliver business goals.

HR professionals

HR professionals operate out of the Line, working as part of the senior

management team in order to influence and implement HR strategy. They work

closely with the central HR departments and line managers to deliver key

aspects of company’s business plan:

Develop the best

Recruit the best

Retain loyal and committed people

Live the values of the company

Transfer HR skills effectively to the line.

Hence these functions help meet the objectives successfully. All Tesco’s

organisation structure works as links of a chain, if one link falls down,

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